BY: Hana Saada
ALGIERS- The Gara Djebilet mining project emerges as a strategic endeavor not only for the national development of the steel industry but also on a regional scale. The exploitation of this vast deposit aims to not only meet Algeria’s needs but also supply African and European markets.
During the ceremony for the primary ore processing plant in Tindouf province, President Abdelmadjid Tebboune emphasized the strategic importance of the Gara Djebilet deposit, outlining its significant economic and developmental potential for Algeria.
Having entered the exploitation and valorization phase over a year ago, the Gara Djebilet iron ore mine stands as one of the world’s largest in terms of reserves, boasting nearly 3.5 billion tons of iron ore. It has an initial production capacity of 2 to 3 million tons annually from 2022 to 2025, with plans to scale up to 40 to 50 million tons per year by 2026.
This mega-project is set to not only secure the supply for national metallurgy and steel plants but also cater to the needs of the broader African and European markets. Algeria aims to diversify its economy by relying on the steel sector, reducing dependence on hydrocarbons, which have traditionally been the country’s primary source of revenue.
Promising Steel Industry Landscape
During his visit to Tindouf, President Tebboune stressed the importance of exporting processed raw materials from Algeria rather than selling them in their raw state. This approach ensures added value and generates more profits for the national economy.
In this context, the President highlighted the immediate launch of the construction of the Béchar steel complex, focused on rail and steel profile production, aiming to be operational by September 2026. This project, with a $1 billion investment and executed by the Chinese consortium CMH (CWE, MCC), in partnership with the National Company of Iron and Steel (Feraal), aligns with the integrated exploitation of the mine. The project includes the Gara Djebilet-Béchar railway line and the primary iron ore processing plant.
Acknowledging the significance of the steel sector in foreign trade, President Tebboune noted the increasing demand for Algerian products, such as rebar, on international markets in Africa, Europe, and Asia. The production output from plants in Oran and Bellara (Jijel) has contributed significantly to Algeria’s steel industry growth, surging from 1 million tons in 2013 to 6 million tons in 2023, with projections to double to 12 million tons by 2026.
Algeria aspires to not only eliminate raw material imports entirely but also become a prominent steel exporter by 2026 when Gara Djebilet’s production reaches full capacity. This ambitious goal is expected to catalyze economic development, providing a new impetus to the country’s growth and generating additional revenue beyond hydrocarbons.
Translated from: https://lalgerieaujourdhui.dz/projet-de-la-mine-de-gara-djebilet-lalgerie-futur-leader-regional-en-siderurgie/
